Cc  /  l 


Ithaca  and  Athens  Railroad  Company. 

SEVEN  PER  OENTT. 

FIRST  MORTGAGE  BONDS. 


Principal  and  Interest  payable  in  New  York  in  GOLD,  free  of 
Government  Tax. 

Principal  due  in  Twenty  Years  from  July  1st,  1870. 

r  CHARLES  J.  PUSEY, 

> 

....  .  y 

78  &  80  Kvoadwai) ,  New  York, 

\ 

AGENT  FOR  THE  SALE  OF  BONDS. 


Hosford  &  Sons,  Printers. 


'THE 


ITHACA  &  ATHENS  RAILROAD  00. 


President,  ElZiPA.A.  OOPX  PUjPj- 

Vice-Pres’t,  GEORGE  W.  SCHUYLER,  Sec’y,  L.  L.  TREMAN. 

Treasurer,  GEORGE  McCHAIN. 

- •  «  • - 


DIRECTORS : 

EZRA  CORNELL,  Founder  of  the  Cornell  University,  . Ithaca. 

GEO.  W.  SCHUYLER,  Late  State  Treasurer, .  “ 

L.  L.  TREMAN.  Merchant,  Firm  of  Treman  Bros .  “ 

GEORGE  McCHAIN,  Merchant,  Firm  of  Andre  us,  McChain  &  Co .  “ 

C.  L.  G-RANT,  President  Tompkins  County  Bank  .  “ 


JOHN  A.  NICHOLLS,  Attorney  at  Law . Spencer,  Tioga  County. 

J.  F.  HIXON,  Manufacturer . Ithaca. 


LEONARD  TREMAN,  Merchant,  Firm  of  Treman  Bros .  “ 

JOSEPH  ESTY . 

A.  B.  CORNELL,  Surveyor  of  Port  of  New  York .  . :  .  . 

WM.  HALSEY,  Grain  Dealer  &  Miller .  “ 

J.  H.  SELKREG,  Ithaca  Journal . . .  .... 

ALEX.  KING,  Lumber  Dealer .  “  . 

.J.  E.  Pi  RADLEY,  Engineer. 

- ^  - 

PRINCIPAL  OFFICES,  ITHACA.  SEW  YORK. 

AG  BA' 7  BOTi  TUB  SALE  OB  flOAEDS, 

CHARLES  J.  PUSEY, 


78  &  80  Broadway,  New  York, 


I 


1-13  S 


THE 


& 


The  Ithaca  and  Athens  Railroad  Company  was  organ¬ 
ized  as  the  Ithaca  and  Towanda  Railroad  Company,  under 
^  the  general  railroad  laws  of  the  State  of  New  York,  the 
name  of  the  Company  being  subsequently  altered  to  its 
present  title  on  account  of  the  change  of  the  southern 
j.y  terminus  of  the  road  from  Towanda  to  Athens. 

r 

The  road  runs  from  Ithaca,  New  York,  to  a  junction 
with  the  Lehigh  Yalley  Railroad,  near  Athens,  Pa.,  a  dis¬ 
tance  of  thirty-six  miles,  affording  the  shortest  means  of 
p  communication  between  the  principal  anthracite  and  bitu- 
^  minous  coal  fields  of  Pennsylvania,  and  water  transporta- 
'rt7tion  at  Ithaca  to  all  points  east  and  west,  and  to  the  great 
Lakes,  via  Cayuga  Lake  and  the  Erie  Canal. 


Being  practically  a  continuation  of  several  heavy  coal 
carrying  roads,  whose  freight  naturally  seeks  the  cheapest 
jc  mode  of  transportation  to  the  points  of  delivery,  the 
southern  connections  of  this  line  cannot  fail  to  contin 
,  uously  supply  it  with  a  fruitful  and  constantly  increasing 
source  of  revenue  ;  and  that  this  is  unquestionably  the 
cheapest  route  for  the  distribution  of  coal  to  the  principal 


4 


towns  on  the  lakes,  in  Northern  and  Central  New  York, 
and  the  West,  will  be  demonstrated  by  figures  presented 
herewith,  gathered  from  official  sources. 

The  connections  of  the  road  are,  at  Athens,  with  the 
Lehigh  Valley  Railroad  and  its  numerous  connections  to 
the  anthracite  coal  fields  of  the  Wilkesbarre,  Pittston  and 
Shamokin  regions;  to  Easton,  Pa.,  and  thence  to  New 
York,  Philadelphia,  and  all  other  important  points. 

With  the  Sullivan  and  Erie  Railroad  at  Towanda,  to  the 
coal  lands  of  Sullivan  county,  Pa. 

With  the  Barclay  Railroad  to  the  Barclay  bituminous 
mines,  all  of  which  will  prove  to  be  inexhaustible  feeders 
to  the  traffic  of  the  line. 

The  tonnage  of  the  Lehigh  Valley  Railroad  for  Northern 


Delivery  in  1870,  was .  276,151  tons* 

The  production  of  the  Barclay  Mines  in  1870,  was .  273,335 

The  Sullivan  and  Erie  Company  will  mine  this  year .  100,000  “ 


For  the  products  of  the- mines  of  the  two  latter  Com¬ 
panies,  this  route  is  the  natural  outlet,  as  well  as  for  those 
in  the  Lehigh  Valley  seeking  an  outlet  to  the  North  and 
West. 

At  Waverley  the  road  is  crossed  by  the  Erie  Railway. 

At  Ithaca,  water  transportation  is  reached,  and  thence 
via  Cayuga  Lake  to  the  Erie  Canal  at  Montezuma,  is  a 
distance  of  forty-six  miles.  From  this  point  without  trans¬ 
shipment  after  leaving  Ithaca,  coal  and  other  freight  can 
be  transported  on  the  largest  class  of  boats  to  all  points 


1 


5 


East  and  W est  on  the  canal  and  lakes ;  the  canal  also 
serving  as  a  feeder  for  freight  destined  south,  which  of 
itself  will  be  an  important  item  in  the  business  of  the 
road,  affording  as  this  line  will,  the  cheapest  route  for  the 
transportation  of  grain,  flour,  etc.,  with  which  commodities 
the  mining  districts  are  mostly  supplied  from  the  North¬ 
west.  The  connections  via  the  North  Pennsylvania  Rail¬ 
road,  give  a  through  route  to  Philadelphia,  by  which 
produce  from  the  lakes  can  be  delivered  at  much  cheaper 
rates  than  by  any  other  channel  of  communication. 

At  Ithaca,  the  road  will  connect  with  a  road  from  thence 
to  Geneva,  the  construction  of  which  is  now  contemplated, 
also  with  the  Ithaca  and  Cortland  Railroad  now  being 
rapidly  completed,  and  which  will  probably  be  in  opera¬ 
tion  by  May  1st,  next.  There  are  also  two  projected 
roads  terminating  at  Ithaca,  which  will  furnish  additional 
northerly  outlets  for  the  business  of  the  road ;  one  to  run 
along  the  east  shore  of  Cayuga  Lake  to  the  New  York 
Central  Railroad  and  Erie  Canal ;  the  other  to  pass 
through  the  centre  of  Tompkins,  Seneca  and  Wayne 
Counties  to  Sodus  Bay  on  Lake  Ontario. 

The  only  other  route  from  the  coal  mines  to  the  Erie 
Canal  is  via  Watkins,  at  the  head  of  Seneca  Lake,  from 
which  point  to  the  canal  junction  at  Montezuma,  the 
distance  is  eighteen  miles  greater  than  from  Ithaca. 
Watkins  being  five  miles  further  from  Athens  than  is 
Ithaca,  gives  a  total  of  twenty-three  miles  in  favor  of  the 
Ithaca  route. 

The  road  traverses  a  rich  and  productive  section  of 
country,  most  of  it  in  a  high  state  of  cultivation,  and 


6 


yielding  large  crops  of  grain,  etc.  At  various  points  in 
the  vicinity  of  the  line  are  extensive  bodies  of  fine  hem¬ 
lock  and  hardwood,  timber,  and  numerous  saw-mills,  which 
will  furnish  to  the  local  traffic  an  important  item  in  the 
article  of  lumber. 

Passing  through  a  natural  valley,  the  entire  distance, 
there  is  no  outlet  from  the  coal  regions  that  will  compare 
with  this  as  to  easy  grades,  and  consequent  economy  in 
operating.  With  the  exception  of  about  half  a  mile, 
where  the  grade  is  twenty  feet,  the  maximum  grade 
against  trade  along  the  whole  line,  is  but  fourteen  feet  to 
the  mile. 

Ithaca  is  a  prosperous  town  at  the  head  of  Cayuga  Lake, 
having  a  population  of  10,000  inhabitants.  Its  manu¬ 
facturing  interests  are  already  of  an  important  character, 
and  possessing  a  water  power,  which  when  fully  utilized, 
will  hardly  be  surpassed  by  that  of  any  other  town  in  the 
State,  surrounded  by  a  rich  agricultural  country,  and  the 
site  of  the  famous  Cornell  University  the  projected  rail¬ 
road  facilities  will,  ere  long,  elevate  Ithaca  to  the  fore¬ 
most  rank  of  interior  towns. 

Within  the  corporate  limits,  in*  addition  to  their  tracks 
and  necessary  sidings,  the  Company  owns  seventy-eight 
acres  of  land,  having  a  water  frontage  of  over  3,000  feet 
on  the  canal  and  Cayuga  Lake.  On  this  property  a  tier  of 
water  basins  500  feet  long  and  sixty  feet  wide  is  being 
excavated.  These  will  have  substantial  wharves  on  which 
will  be  erected  extensive  coal  pockets,  by  means  of  which 
the  coal  will  be  transferred  from  cars  to  boats  at  slight 
cost,  and  be  afforded  ample  storage. 


7 


• 

The  principal  source  of  revenue  will  be  from  the  trans¬ 
portation  of  coal.  Particular  attention  is  therefore  called 
to  the  following  statement  of  the  comparative  cost  of 
transportation  by  this  and  other  routes,  showing  the  dif¬ 
ference  in  favor  of  this  line  : 

HARD  AND  SOFT  COAL. 


1. 

Athens  to  Syracuse, 

via  Southern  Central  and  New  York  Cen¬ 
tral  Railroads .  $2  26 

via  Ithaca  and  Athens  Railroad,  Lake 

and  Canal .  1  53 

Difference  in  favor  of  Ithaca  route .  $0  73 

2. 

Athens  to  Albany, 

via  Erie  and  Albany  and  Susquehanna 

Railroads . .  $3  64 

via  Ithaca  and  Athens  Railroad,  Lake 

and  Canal .  2  48 

Difference  in  favor  of  Ithaca  route .  $1  16 

i 

3. 

Athens  to  Buffalo, 

via  Erie  Railroad . .  $3  44 

via  Ithaca  and  Athens  Railroad,  Lake 

and  Canal .  2  03 

Difference  in  favor  of  Ithaca  route .  $1  41 


8 


4. 

Athens  to  Rochester 

via  Erie  Railroad . .  $2  ■  '8 

via  Ithaca  and  Athens  Railroad,  Lake 

and  Canal  .  178 

Difference  in  favor  of  Ithaca  route .  $0  90 


HARD  COAL. 

5. 

WlLKESBARRE  TO  OSWEGO, 

via  Scranton,  Lanesboro:  and  Erie, 
and  Syracuse  and  Binghamton 

Railroads .  $4  24 

via  Lehigh  Valley  and  Ithaca  & 

Athens  Railroads,  Lake  &  Canal  3  80 

Difference  in  favor  of  Ithaca  route .  $0  44 

6. 

WlLKESBARRE  TO  BUFFALO, 

via  Scranton  and  Erie  Railroad. ...  $5  72 

via  Lehigh  Valley  and  Ithaca  & 

Athens  Railroads,  Lake  &  Canal  4  05 

Difference  in  favor  of  Ithaca  route .  $1  67 

7. 

PlTTSTON  TO  LTTICA, 

via  Scranton,  Binghamton  and  Syracuse..  $4  08 
via  Lehigh  Valley  and  Ithaca  and  Athens 

Railroads,  Lake  and  Canal .  3  85 

Difference  in  favor  of  Ithaca  route .  $0  23 


9 


SHAMOKIN  AND  PITTSTON  (Hard  Coal)  Compared. 

8. 

Shamokin  to  junction  of  Erie  and  Seneca  Canals  at  Montezuma, 

via  Northern  Central  Railroad,  Watkins  and  Seneca  Lake. .  .  $3  90 

Pittston  to  junction  of  Erie  and  Seneca  Canals  at  Montezuma,  via 

Lehigh  Valley,  Ithaca  and  Athens  Railroad  and  Cayuga  Lake  3  00 

Difference  in  favor  of  Pittston  Coal  and  Ithaca  route .  $0  90 

9. 

Shamokin  to  Buffalo, 

via  Northern  Central  and  New  York 

Central  Railroads .  $6  10 

Pittston  to  Buffalo, 

via  Lehigh  Valley  and  Ithaca  and  Athens  « 
Railroads,  Lake  and  Canal _ .....  3  85 

Difference  in  favor  of  Pittston  Coal  and  Ithaca  route .  $2  25 


SULLIVAN  AND  SCRANTON  (Hard  Coal)  Compared. 

10. 

Scranton  to  Syracuse, 

via  Del.,  L.  &  TV  estern,  and  Syracuse 
and  Binghamton  Railroads .  $2  84 

Sullivan  to  Syracuse, 

via  Lehigh  Valley  and  Ithaca  &  Athens 

Railroads,  Lake  and  Canal .  2  35 

Difference  in  favor  of  Ithaca  route  and  Sullivan  Coal .  $0  49 


10 


11. 

Scranton  to  Oswego, 

via  Del.,  L.  &  Western,  and  Syracuse 


and  Binghamton  Railroads .  $3  56 

Sullivan  to  Oswego, 

via  Lehigh  Y alley  and  Ithaca  &  Athens 

Railroads,  Lake  and  Canal .  2  60 


Difference  in  favor  of  Ithaca  route  and  Sullivan  Coal .  $0  96 


It  may  be  remarked  here  that  the  semi-anthracite  coal 
from  the  Sullivan  mines  is  pronounced  equal  to  the  best 
hard  coal  for  general  use,  and  superior  for  the  grate  and 
the  production  of  steam. 

The  following  comparison  will  show  that  the  Sullivan 
coal  can  compete  successfully  with  that  from  Scranton, 
not  only  to  the  above  places,  but  to  points  more  distant 
on  the  Erie  Canal : 

Scranton  to  Albany, 

via  Del.,  L.  &  Western,  and  Albany  and 


Susquehanna  Railroads .  $4  06 

Sullivan  to  Albany, 

via  Lehigh  Valley,  and  Ithaca  &  Athens 

Railroads,  Lake  and  Canal .  3  30 


Difference  in  favor  of  Sullivan  Coal  and  Ithaca  route .  $0  76 


SOFT  COAL.  (Blossburg  and  Barclay  Coal  Compared.) 

12. 

Blossburg  to  junction  of  Erie  and  Seneca  Canals  at  Montezuma, 

via  Northern  Central  Railroad  and  Seneca  Lake  .  $2  24 

Barclay  to  Montezuma, 

via  Barclay,  Lehigh  Valley,  Ithaca  & 

Athens  Railroads,  and  Cayuga  Lake  $1  82 

Difference  in  favor  of  Barclay  Coal  and  Ithaca  route .  $0  42 

which  will  hold  good  to  all  points  on  the  Erie  Canal,  East  and  West. 


11 


13. 

Blossburg  to  Rochester, 

via  Corning  and  Erie  Railroad .  $2  70 

Barclay  to  Rochester, 

via  Ithaca,  Lake  and  Canal .  ...  2  42 


Difference  in  favor  of  Barclay  Coal  and  Ithaca  route .  $0  28 

14. 

Blossburg  to  Buffalo, 

via  Corning  and  Erie  Railroad .  $3  46 

Barclay  to  Buffalo, 

via  Ithaca,  Lake  and  Canal .  2  67 


Difference  in  favor  of  Barclay  Coal  and  Ithaca  route .  $0  79 


BARCLAY  COAL. 

15. 

Barclay  to  Utica, 

via  Southern  Central  and  New  York  Cen¬ 
tral  Railroads .  $3  96 

via  Ithaca,  Lake  and  Canal .  2  67 


Difference  in  favor  of  Ithaca  route .  $1  29 

16. 

Barclay  to  Syracuse,  y 

via  Southern  Central  and  N£fr  York 

Central  Railroads . * .  $2  90 

via  Ithaca,  Lake  and  Canal .  2  17 


Difference  in  favor  of  Ithaca  route  .  $0  73 

Among  the  items  of  general  freight  which  may  be 
expected  to  find  their  way  over  this  route,  the  article  of 
grain  merits  some  mention.  As  before  stated,  the  sections 
of  Pennsylvania  reached  by  the  connections  of  this  road, 
are  in  a  great  measure  supplied  from  the  North-west. 


12 


The  freight  on  grain  from  Buffalo  to  Waver- 

ley  is  20  cents  per  100  lbs.,  or  per  ton.  .  .  $4  00 

From  Buffalo  to  Ithaca,  per  canal . $1  33 

From  Ithaca  to  Athens  via  I.  &  A.  B.R.  ...  1  60  2  93 

Making  a  difference  of .  $1  07  ^ 

per  ton  in  favor  of  the  Ithaca  route,  besides  avoiding  the 
expense  and  waste  attendant  on  changing  from  broad  to 
narrow  gauge  cars. 

From  Union  Springs  on  Cayuga  Lake,  there  are  annually 
shipped  south,  about  ten  thousand  tons  of  plaster,  most 
of  which  now  finds  a  circuitous  outlet  by  Seneca  Lake. 

On  the  completion  of  this  road  a  direct  route  will  be 
afforded,  and  the  largest  portion  of  the  plaster  will  go 
this  way.  Large  quantities  of  Syracuse  salt,  Canada,  Lake 
Superior  and  Oneida  County  iron  ore  are  used  in  the 
mining  districts  and  the  interior  of  Pennsylvania,  the 
transportation  of  which  will  be  largely  absorbed  by  this 
route,  and  it  is  believed  that  the  lower  rate  of  freight  that 
it  will  be  enabled  to  offer  will  induce  a  considerable 
increase  in  the  shipment  of  these  articles.  These  remarks 
will  also  apply  to  Canada  pine  lumber  and  live  stock 
raised  in  northern  New  York,  from  which,  and  from  mis¬ 
cellaneous  and  express  freight  the  Company  may  fairly  t 

calculate  to  receive  a  large  revenue. 

From  passenger  traffic  a  well-paying  income  may  safely  t 

be  relied  on.  In  addition  to  the  by  no  means  inconsider¬ 
able  local  and  business  travel  that  the  superior  facilities 
of  the  road  will  command,  the  natural  beauty  of  the 
scenery  around  Ithaca  and  on  Cayuga  Lake  will  doubtless 


13 


induce  very  many  to  select  this  route  to  reach  the  New 
York  Central  Road  from  Pennsylvania  and  other  sections. 

The  entire  line  is  graded,  bridges  built  and  ready  for 
the  rails,  which  are  purchased,  and  a  large  portion  now 
')  delivered  to  the  Company.  Favorable  contracts  have 

also  been  made  for  the  locomotives  and  rolling  stock, 
which  will  be  completed  by  the  time  the  iron  is  laid,  and 
it  is  expected  that  the  line  will  be  in  full  operation  by  the 
first  of  June  next.  The  road  has  been  constructed  with 
great  economy,  but  very  substantially ;  the  iron  is  of  the 
highest  grade  of  American  manufacture,  and  the  equip¬ 
ment  of  the  first  order  of  workmanship  and  material. 

The  Board  of  Directors  of  the  Company  is  composed  of 
some  of  the  principal  business  men  of  Ithaca,  whose  names 
are  a  sufficient  guarantee  for  the  faithful  and  able  manage¬ 
ment  of  the  affairs  of  the  Company,  and  for  the  honest 
execution  of  their  duties ;  and  it  may  not  be  out  of  place 
to  state  that  not  one  of  these  gentlemen  has  received  a 
salary  or  other  remuneration  for  his  services,  their  interest 
in  the  enterprise  and  the  prosperity  of  the  town  of  Ithaca, 
having  been  sufficient  inducement  for  them  to  devote  such 
of  their  time  to  the  carrying  out  of  the  project  as  has 
been  necessary.  The  fact  of  the  town  of  Ithaca  having 
subscribed  to  one-lialf  of  the  capital  stock  of  the  Company, 
is  an  evidence  of  the  confidence  placed  by  the  community 
in  the  enterprise  and  its  management. 

The  capital  stock  of  the  Company  is  $600,000,  of  which 
$300,000  has  been  subscribed  by  the  town  of  Ithaca,  and 
$200,000  by  individuals  there  and  along  the  line. 


14 


The  $500,000  raised  from  stock  subscriptions  has  been 
judiciously  expended  on  the  right  of  way,  grading, 
bridging,  tieing  and  fencing  of  the  road,  the  remaining 
$100,000  together  with  the  bonds  will  be  used  for  its 
completion  and  equipment. 

To  iron  and  equip  the  road,  and  to  pay  for  property 
purchased  for  wharves  at  Ithaca,  and  complete  the  con¬ 
templated  improvements  at  that  point,  the  Company  has 
issued  bonds  of  $100,  $500,  and  $1,000  each  to  the 
amount  of  $600,000;  secured  by  a  first  and  only  mort¬ 
gage  to  Hon.  Josiah  B.  Williams,  of  Ithaca,  Trustee,  on 
the  whole  road  and  equipment.  The  bonds  run  twenty 
years,  and  bear  interest  at  the  rate  of  seven  per  cent, 
per  annum,  payable  semi-annually  on  the  first  days  of 
July  and  January  of  each  year,  principal  and  interest 
payable  in  gold  coin  in  the  City  of  New  York. 

The  mortgage  provides  for  a  sinking  fund  to  be  set 
apart  out  of  the  earnings  of  the  road,  for  the  payment  of 
the  bonds  at  maturity. 


The  following  is  an  estimate  of  the  earnings  of  the 
Company  for  the  first  year : 


200,000  Tons  Coal,  carried  36  miles  at  2c.,  72c.  per  ton.  .  .$144,000  00 


5,000,000  Feet  of  Lumber,  at  $2 .  10,000  00 

3,000,000  Lath .  720  00 

Miscellaneous  Freight,  including  Grain  going  South .  30,000  00 

Return  Freight,  Miscellaneous . 8,000  00 

Plaster  .  5,000  00 

Salt  and  Lime .  2,000  00 

Cattle  and  Sheep .  3,000  00 

Express  . . 4,000  00 

Passengers  and  Mails  .  18,000  00 


$224,720  00 

Operating  Expenses,  55  per  cent . $123,596  00 

Interest  on  Bonds,  7  per  cent,  on  $600,000  42,000  00 

Premium  on  Gold,  10  per  cent .  4,200  00  169,796  00 


Net  earnings  over  all 


$54,924  00 


From  information  and  assurances  received  from  con¬ 
necting  coal  roads,  it  is  believed  that  the  foregoing  is  a 
very  low  estimate  of  the  earnings  of  the  road,  and  that 
the  actual  result  of  the  first  year’s  operations  will  be  much 
more  favorable  than  these  figures  indicate. 

The  bonds  of  the  Company  are  now  offered  for  sale, 
and  are  confidently  recommended  as  one  of  the  safest 
securities  ever  placed  on  the  market,  being  secured  by  a 
first  and  only  mortgage  on  property  costing  with  the  most 
economical  outlay,  double  the  amount  of  the  whole  issue. 

The  high  social  and  financial  standing  of  the  managers 
of  the  road,  the  certainty  of  an  ample  revenue  from  the 


16 


day  of  its  completion,  and  a  constantly  increasing  business, 
preclude  the  possibility  of  any  failure  on  the  part  of  the 
Company  to  pay  the  interest  on  the  bonds  or  their  prin¬ 
cipal  at  maturity. 


Any  further  information  desired  will  be  furnished  on 
application  to 


CHARLES  J.  PUSEY, 


78  &  SO  B'ROAZnV'A.r,  JV'BW  TORtf, 


Agent  for  the  Sale  of  the  Bonds. 


